Sales and Manufacturing, to a company formed by DLJ Merchant Banking Partners II, L.P. and affiliated investors.
"These divestitures continue our strategy of focusing on businesses with strong recurring revenue streams and low cyclicality," said L. Dennis Kozlowski, Tyco's Chairman and Chief Executive Officer. "For the past several years, we have emphasized growth in Tyco's revenue and earnings in those areas that provide the greatest growth potential and economic stability. The success of this strategy is reflected in the tremendous gains in recurring revenue from our electronic security monitoring, fire protection inspection, and undersea fiber optic cable maintenance businesses, as well as the considerable and sustainable expansion of our activities in disposable medical products, the construction of undersea fiber optic cable networks, and long-term water/wastewater contracts," he added.
"While the sale of these businesses reduces the size of our Flow Control segment, it in no way lessens our commitment to our global valves and controls business, where we have been experiencing both strong growth and margin improvement, and see significant opportunities for acquisition," he continued.
Tyco International Ltd., a diversified manufacturing and service company, is the world's largest manufacturer, installer, and provider of fire protection systems and electronic security services, the largest manufacturer andservicer of electrical and electronic components and underwater
telecommunications systems, the largest manufacturer of flow control valves, and has strong leadership positions in disposable medical products,plastics, and adhesives. The Company operates in more than 80 countries around the world and has expected fiscal 1999 revenues in excess of $22 billion.
FORWARD LOOKING INFORMATION
Comments in this earnings release concerning the economic sensitivity of revenue and earnings and expected fiscal 1999 revenues are forward-looking statements, which are based on management's good faith expectations and belief concerning future developments. Actual results may materially differ from these expectations as a result of many factors, relevant examples of which are set forth in the "Management Discussion and Analysis" section of the Company's 1998 Annual Report to Shareholders and the Company's 1998 Annual Report on Form 10-K.